Introduction to Property and Real Estate Taxation
Expert-defined terms from the Professional Certificate in Property and Real Estate Taxation course at Stanmore School of Business. Free to read, free to share, paired with a globally recognised certification pathway.
**Ad Valorem Taxes #
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Ad valorem taxes are property taxes based on the property's value, usually levie… #
The tax rate is applied to the assessed value of the property, and the tax amount is due annually or semi-annually.
**Assessed Value #
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Assessed value is the determined value of a property for taxation purposes, usua… #
Local tax assessors calculate assessed value based on market trends, location, and property condition.
**Capitalization Rate #
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The capitalization rate is the rate used to convert a property's net operating i… #
It is calculated by dividing the net operating income by the property's value or purchase price.
**Deed #
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A deed is a legal document that transfers ownership of real property from one pa… #
It contains a description of the property, the grantor (seller), the grantee (buyer), and the signature of the grantor.
**Easement #
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An easement is a legal right to use another's property for a specific purpose, s… #
Easements can be temporary or permanent and are typically recorded in the property deed.
**Eminent Domain #
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Eminent domain is the government's power to take private property for public use… #
Eminent domain is the government's power to take private property for public use, with just compensation to the property owner.
**Equalization #
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Equalization is the process of adjusting assessed values to ensure they reflect… #
Equalization is the process of adjusting assessed values to ensure they reflect fair market value and are uniform across a jurisdiction.
**Fee Simple #
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Fee simple is the highest form of property ownership, granting the owner full ri… #
Fee simple is the highest form of property ownership, granting the owner full rights to the property, including the right to sell, lease, or bequeath it.
**Homestead Exemption #
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A homestead exemption is a reduction in property tax for a primary residence, us… #
A homestead exemption is a reduction in property tax for a primary residence, usually based on the property's value or a fixed amount.
**Improvements #
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Improvements are additions or alterations to real property that increase its val… #
Improvements are additions or alterations to real property that increase its value, such as buildings, fences, or landscaping.
**Leasehold Interest #
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Leasehold interest is the right to occupy and use a property for a specified per… #
Leasehold interest is the right to occupy and use a property for a specified period, as outlined in a lease agreement.
**Market Value #
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Market value is the estimated price a property would sell for in an open and com… #
Market value is the estimated price a property would sell for in an open and competitive market.
**Millage Rate #
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The millage rate is the tax rate expressed in dollars per $100 of assessed value #
It is used to calculate property taxes.
**Personal Property Tax #
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Personal property tax is a tax on moveable property, such as furniture, vehicles… #
Personal property tax is a tax on moveable property, such as furniture, vehicles, or equipment.
**Proposition 13 #
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Proposition 13 is a California law limiting property tax increases #
It sets the property tax rate at 1% of the property's assessed value and limits annual assessed value increases to 2% or the rate of inflation, whichever is lower.
**Real Estate #
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Real estate is land and any permanent structures or improvements attached to the… #
Real estate is land and any permanent structures or improvements attached to the land.
**Real Property #
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Real property is land, buildings, and other permanent structures, as well as the… #
Real property is land, buildings, and other permanent structures, as well as the rights and interests associated with owning real estate.
**Special Assessment #
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A special assessment is a fee levied on property owners to fund specific improve… #
A special assessment is a fee levied on property owners to fund specific improvements or services, such as road repairs or sewer connections.
**Tax Abatement #
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A tax abatement is a reduction or elimination of property taxes for a specified… #
A tax abatement is a reduction or elimination of property taxes for a specified period, usually to encourage development or revitalization.
**Tax Assessor #
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A tax assessor is a government official responsible for determining a property's… #
A tax assessor is a government official responsible for determining a property's assessed value for taxation purposes.
**Tax Base #
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The tax base is the total value of all taxable properties in a jurisdiction, use… #
The tax base is the total value of all taxable properties in a jurisdiction, used to calculate property tax revenue.
**Tax Exemption #
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A tax exemption is a reduction or elimination of property taxes for specific pro… #
A tax exemption is a reduction or elimination of property taxes for specific properties or property owners, such as non-profit organizations or veterans.
**Tax Lien #
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A tax lien is a legal claim against a property for unpaid taxes #
A tax lien is a legal claim against a property for unpaid taxes.
**Tax Rate #
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The tax rate is the percentage or dollar amount used to calculate property taxes… #
The tax rate is the percentage or dollar amount used to calculate property taxes, based on the property's assessed value.
**Tax Roll #
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The tax roll is a list of all taxable properties in a jurisdiction, including th… #
The tax roll is a list of all taxable properties in a jurisdiction, including their assessed values and tax amounts.
**Zoning #
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Zoning is the regulation of land use in a jurisdiction, dividing areas into dist… #
Zoning is the regulation of land use in a jurisdiction, dividing areas into districts with specific permitted uses and development standards.